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Duke Energy Progress in discussions to purchase NCEMPA generation assets


From the February 4, 2014 issue of Public Power Daily

Originally published February 4, 2014

By Jeannine Anderson
Editor

Duke Energy Progress and the North Carolina Eastern Municipal Power Agency said yesterday they have entered into exclusive discussions regarding the potential purchase by Duke Energy Progress of NCEMPA's ownership in certain generating assets.

NCEMPA currently maintains partial ownership interests in several Duke Energy Progress plants, including Brunswick Nuclear Plant units 1 and 2 (Brunswick County), Mayo Plant (Person County), Roxboro Plant Unit 4 (Person County) and the Harris Nuclear Plant (Wake County).

NCEMPA ownership in these plants represents approximately 700 megawatts of generating capacity. NCEMPA members' distribution assets are not part of these discussions.

Although the parties are in discussions, no definitive agreement has been reached.

Should a potential agreement be reached, Duke Energy Progress and NCEMPA would enter into a wholesale power contract to continue meeting the needs of NCEMPA customers currently served by the power agency's interest in Duke Energy Progress's plants.

NCEMPA and Duke Energy Progress said they "will continue to negotiate all aspects of this agreement with the best interests of customers, communities and shareholders in mind."

Any potential transaction would take many months to complete, with various aspects of the transaction subject to approval by, among others, the boards of Duke Energy and NCEMPA, NCEMPA member utilities, and appropriate state and federal agencies.

NCEMPA consists of 32 cities and towns in eastern North Carolina -- including some of the largest cities in the region -- that own and operate their electric systems and serve nearly 270,000 retail customers. The agency was formed in 1978 and is managed by ElectriCities of North Carolina, headquartered in Raleigh.

Duke Energy Progress is a subsidiary of Duke Energy. It provides electricity and related services to nearly 1.5 million customers in North Carolina and South Carolina. The utility is headquartered in Raleigh. 

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